By Mary-Katherine Stinson
Lexington, Ky., April 19 – Karlsberg Brauerei GmbH placed its fourth corporate bond, identified as bond 2024/2029 (ISIN: NO0013168005), with an increased issue volume of €55 million, according to a company release.
The company noted that the private placement was “significantly oversubscribed,” leading to the €5 million increase.
The offer was divided into three parts and consisted of the following: an exchange offer for its existing corporate bond 2020/2025 (ISIN: DE000A254UR5) with a multiple purchase option, a public offer via subscription in Germany and Luxembourg and a private placement also in Germany, selected European countries and certain other countries.
As previously reported, the interest rate for the new bond was fixed at the lower end of the range at 6%. Price talk was between 6% and 7%, with the final rate to be determined at the end of the original offer period on April 25.
Around 46% of the existing 2020/2025 was tendered for exchange, with almost half of that volume allocated. All orders up to €9,000 placed via subscription on the Deutsche Borse were allocated €1,000 and subscription of €10,000 or more were allocated €2,000. The company stated in the release that subscriptions under the multiple purchase option could not be taken into account.
Previously, Karlsberg said that due to “high demand” both the exchange period and the subscription period would be shortened.
The exchange period, which began on April 5, ended at noon p.m. ET on April 18. It was originally scheduled to end at noon p.m. ET on April 22.
During this period, holders could exchange their existing bonds on a 1:1 basis for the new bonds, a cash settlement of €10.00 and accrued interest, as previously reported.
The subscription period for the new bonds expired at 3 a.m. ET on April 19. It was originally set to end at 6 a.m. ET on April 25.
The prospectus was approved by the Luxembourg Financial Market Authority Commission de Surveillance du Secteur Financier, on April 3.
Pareto Securities AS, Frankfurt Branch, is acting as the lead manager for the private placement.
The company will use the proceeds to call any of the remaining €50 million 2020/2025 bonds ISIN: DE000A254UR5) not tendered in the offer at a redemption price of 101 within three business days of the issuance of the new bonds and by June 6 at the latest.
Any remaining proceeds will be used to finance the company’s activities, specifically in investments in technical equipment and brand image.
The 2020/2025 bonds have been callable at 101 since Sept. 30.
Existing bondholders are being given the opportunity exchange those notes for the new notes.
Accordingly, the issue and value date of the new bonds on the Frankfurt Stock Exchange has been adjusted to May 2. The listing for the bonds on the Nordic ABM of the Oslo Stock Exchange is expected within six months of the issue date.
The brewery is based in Homburg, Germany.
| Issuer: | Karlsberg Brauerei GmbH
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| Amount: | €55 million
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| Issue: | Corporate bonds, fourth issue
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| Maturity: | 2029
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| Bookrunner: | Pareto Securities AS, Frankfurt Branch
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| Legal advisor: | Heuking Kuhn Luer Wojtek
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| Coupon: | 6%
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| Trade date: | April 22
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| Settlement date: | May 2
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| Price talk: | Between 6% and 7%
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| ISIN: | NO0013168005
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